DStv Channel 403 Thursday, 26 December 2024

Stock markets diverge going into weekend

NEW YORK - Global stock markets diverged on Friday in an end to a week's trading dominated by earnings updates and angst over rising bond yields amid US election uncertainty.

Wall Street stocks finished the day mixed, with the Nasdaq pressing higher and the Dow pulling back.

Besides the neck-and-neck US election, investors are looking ahead to major economic data next week and earnings from tech giants.

"There's more uncertainty out there than anything else," said LBBW's Karl Haeling.

But a rise on US bond yields -- at least partially due to speculation that a return to the White House by Donald Trump would lead to tax cuts that fuel inflation -- have acted as a headwind.

Next week will see five of the "Magnificent Seven" tech stocks reporting earnings, including Alphabet (Google), Amazon, Apple, Meta (Facebook) and Microsoft.

Key US monthly jobs numbers come out on Friday.

"This could prove a big test for the markets, while also being a driver of sentiment as we head towards year-end," said Trade Nation analyst David Morrison.

In Europe, London ended the day down 0.3 percent as investors awaited the first budget of Britain's new Labour government on Wednesday, expected to include tax rises on businesses.

Frankfurt edged higher after data showed Germany's business confidence rebounded in October.

That ended a four-month streak of declines and offered some rare good news for Europe's beleaguered top economy.

In Asia, Shanghai and Hong Kong markets rose amid hopes of stronger growth in China following the country's recent attempts to stimulate its stalling economy. 

Crude futures climbed and the dollar strengthened against main rivals heading into the weekend break.

Tokyo's stock market closed down and the yen dipped against the dollar ahead of Japan's national elections on Sunday.

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